Apple faces a new lawsuit from three customers who claim they lost about $1.8 million after downloading a fake Sparrow Wallet app from the App Store. The complaint, filed in a California federal court, accuses Apple of failing to properly review and monitor apps offered to iPhone users.
The plaintiffs said they trusted the app because Apple promotes the App Store as a safe place to download software. However, Sparrow Wallet does not offer an official iOS app, as the legitimate Bitcoin wallet only supports Windows, macOS, and Linux.
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According to the lawsuit, the fake app copied Sparrow Wallet’s name and appearance before tricking users into sharing information that gave scammers access to their Bitcoin. The stolen funds were then transferred to private cryptocurrency wallets controlled by the attackers.
James Ramirez allegedly lost Bitcoin worth about $875,000, while Christopher Ellis lost around $840,000 and Jalen Delgado lost approximately $120,000 between May and August 2025.
Lawsuit questions Apple’s App Store checks
The complaint also claims Apple failed to act quickly after users and Sparrow Wallet’s developer reported fraudulent versions of the app. It alleges that other fake Sparrow Wallet apps continued appearing in the App Store despite repeated warnings.
The plaintiffs are seeking damages and full reimbursement for the money stolen through the fraudulent app.
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